How Generative AI Adds Value to the Future of Work
这篇Upwork的文章深入探讨了生成式人工智能（AI）在重新塑造工作价值方面的变革力量，强调了自动化和创新不仅改变了工作岗位，还在各个行业提高了生产力和创造力。文章着重讨论了对劳动力市场的细微影响，强调了技能发展和道德考虑的重要性，并对人工智能与人类合作的未来提供了前瞻性的视角。
Authors: Dr. Ted Liu, Carina Deng, Dr. Kelly Monahan
Generative AI’s impact on work: lessons from previous technology advancements
In this study, we provide a comprehensive analysis of the initial impact of generative AI (artificial intelligence) on the Upwork marketplace for independent talent. Evidence from previous technological innovations suggests that AI will have a dual impact: (1) the displacement effect, where job or task loss is initially more noticeable as technologies automate tasks, and (2) the reinstatement effect, where new jobs and tasks increase earnings over time as a result of the new technology. Take for example the entry of robotics within the manufacturing industry. When robotic arms were installed along assembly lines, they displaced some of the tasks that humans used to do. This was pronounced in tasks that were routine and easy to automate. However, new tasks were then needed with the introduction of robotics, such as programming the robots, analyzing data, building predictive models, and maintaining the physical robots. The effects of new technologies often counterbalance each other over time, giving way to many new jobs and tasks that weren’t possible or needed before. The manufacturing industry is now projected to have more jobs available as technologies continue to advance, including Internet of Things (IoT), augmented reality, and AI, which transform the way work is completed. The issue now at hand is ensuring enough skilled workers are able to work alongside these new technologies.
While this dynamic of displacement and reinstatement generally takes years to materialize, as noted above in the manufacturing example, the effects of generative AI may be taking place already on Upwork. For the platform as a whole, we observe that generative AI has increased the total number of job posts and the average spend per new contract created. In terms of work categories, generative AI has reduced demand in writing and translation, particularly in low-value work, while enhancing earnings in high-value work across all groups. In particular, work that relies on this new technology like Data Science and Analytics are reaping the benefits. The report highlights the importance of task complexity and the skill-biased nature of AI's impact. Skills-biased technology change is to be expected as the introduction of new technologies generally favors highly skilled workers. We observe this on our platform as high-skill freelancers in high-value work are benefiting more, while those in low-value work face challenges, underscoring the need for skilling and educational programs to empower freelancers to adapt and transition in this evolving work landscape.
Understanding the lifecycle of work on Upwork and the impact of gen AI
Generative AI has a growing presence in how people do their work, especially since the public release of ChatGPT in 2022. While there’s been extensive discussion about the challenges and opportunities of generative AI, there is limited evidence of such impact based on transaction data in the broader labor market. In this study, we use Upwork’s platform data to estimate the short-term effects of generative AI on freelance outcomes specifically. The advantage of the Upwork platform is that it is in itself a complete marketplace for independent talent, as we observe the full life cycle of work: job posts, matching, work execution, performance reviews, and payment. Few other instances exist where a closed-system work market can be studied and observed. Thus, the results of this study offer insights into not only the online freelance market, but also the broader labor market.
How technological progress disrupts the labor market is not a new topic. Acemoglu and Restrepo (2019) argue that earning gain arises from new tasks created by technological progress, which they term the “reinstatement effect,” even if the automation of certain tasks may have a displacement effect in the labor market initially. What this means is that there may be a dynamic effect going on: the displacement effect (e.g., work loss) may be more noticeable in the beginning of a new technology entry, but as new jobs and tasks are being created, the reinstatement effect (e.g., rates increase, new work) will begin to prevail. In the broader labor market, such dynamics will likely take years to materialize. But in a liquid and active independent work marketplace like Upwork, it’s possible that we’re already observing this transition happening.
Existing studies such as this provides a useful conceptual framework to think about the potential impact of generative AI. It’s likely that in the short term, the replacement of generative AI will continue to be more visible, not just at Upwork, but also in the broader labor market. Over time and across work categories, however, generative AI will likely spur new tasks and jobs, leading to the reinstatement effect becoming stronger and increasing rates for those occupations with new tasks and a higher degree of task complexity. We’ve already seen evidence of new demand as a result of gen AI on our Upwork platform, with brand new skill categories like AI content creator and prompt engineer emerging in late 2022 and early 2023. We test this hypothesis of both work displacement and reinstatement, and provide insights into how generative AI affects work outcomes.
Impact of generative AI on work
To understand the short-term impact of generative AI on the Upwork freelance market, we capitalize on a natural experiment arising from the public release of ChatGPT in November 2022. Because this release was largely an unanticipated event to the general public, we’re able to estimate the causal impact of generative AI. The essential idea behind this natural experiment is that we want to compare the work groups affected by AI with the counterfactual in which they are not. To implement this, we use a statistical and machine-learning method called synthetic control. Synthetic control allows us to see the impact that an intervention, in this case, the introduction of gen AI, has on a group over time by comparing it to a group with similar characteristics not exposed to the intervention. The advantage of this approach is that it allows us to construct reasonably credible comparison groups and observe the effect over time.
The units of analysis we use are work groups on the Upwork platform; we analyze variables such as contract number and freelancer earnings. Instead of narrowly focusing on a single category like writing, we extend the analysis to all the major work groups on Upwork. Moreover, we conduct additional analysis of the more granular clusters within each major group. The synthetic control method allows for flexibility in constructing counterfactuals at different levels of granularity. The advantage of our comprehensive approach is that we offer a balanced view of the impact of generative AI across the freelance market.
Generative AI’s short-term impact on job posts and freelancer earnings
Looking at the platform as a whole, we observe that generative AI has increased the total number of job posts by 2.4%, indicating the overall increased demand from clients. Moreover, as shown in Figure 1, for every new job contract, there is an increase of 1.3% in terms of freelancer earnings per contract, suggesting a higher value of contracts.
Figure 1 Effect of Generative AI on Freelancer Earning per Contract
The Upwork platform has three broad sectors: 1. Technological and digital solutions (tech solutions); 2. Creative & outreach; 3. Business operations and consulting. We have observed both positive and negative effects within each of the sectors, but two patterns are worth noting:
The reinstatement effect of generative AI seems to be driving growth in freelance earnings in sectors related to tech solutions and business operations. In contrast, within the creative sector, while sales and marketing earnings have grown because of AI, categories such as writing and translation seem disproportionately affected more by the replacement effect. This is to be expected due to the nature of tasks within these categories of work, where large language models are now able to efficiently process and generate text at scale.
Generative AI has propelled growth in high-value work across the sectors and may have depressed growth in low-value work. This supports a skills-biased technology change argument, which we’ve observed throughout modern work history.
More specifically and within tech solutions, data science & analytics is a clear winner, with over 8% of growth in freelance earnings attributed to generative AI. This makes sense as the reinstatement effect is at work; new work and tasks such as prompt engineering have been created and popularized because of generative AI. Simultaneously, while tools such as ChatGPT automate certain scripting tasks (therefore leading to a replacement effect), it mainly results in productivity enhancements for freelancers and potentially leads to them charging higher rates and enjoying higher overall earnings per task.
In terms of contracts related to business operations, we observe that accounting, administrative support, and legal services all experience gains in freelance earnings due to generative AI, ranging from 6% to 7%. In this sector, customer service is the only group that has experienced reduced earnings (-4%). The reduced earnings result for customer service contracts is an example of the aggregate earnings outcomes of AI, related to the study by Brynjolfsson et al (2023), who find that generative AI helps reduce case resolution time at service centers.
A potential outcome of this cut in resolution time is that service centers will need fewer workers, as more tasks can be completed by a person working alongside AI. At the same time, the reinstatement effect has not materialized yet because there are no new tasks being demanded in such settings. This may be an instance where work transformation has not yet been fully realized, with AI enabling faster work rather than reinventing a way of working that leads to new types of tasks. A contrasting case is the transformation that happened with bank tellers when ATMs were introduced. While the introduction of these new technologies resulted in predictions of obsolete roles in banks, something different happened over time. Banks were able to increase efficiency as a result of ATMs and were able to scale and open more branches than before, thereby creating more jobs. In addition, the transactional role of a bank teller became focused on greater interpersonal skills and customer relationship tasks.
When taken together, the overall gains in such business operations work on Upwork are an encouraging sign. These positions tend to require relatively intensive interpersonal communication, and it seems the short-term effects of generative AI have helped increase the value of these contracts, similar to what we saw in the banking industry when ATMs were introduced.
As of now, the replacement effect of AI seems more noticeable in creative and outreach work. The exception is sales and marketing contracts, which have experienced a 6.5% increase in freelance earnings. There is no significant impact yet observed on design. For writing and translation, however, generative AI seems to have reduced earnings by 8% and 10% respectively. However, as we will discover, task complexity has a moderating effect on this.
High-value work benefit from generative AI, upskilling needed for low-value work
Having discussed the overall impact of generative AI across categories, we now decompose the impact by values. The reason we’re looking at the dimension of work value is that there may be a positive correlation between contract value and skill complexity. Moreover, skill complexity may also be positively correlated with skill levels. Essentially, by evaluating the impact of AI by different contract values, we can get at the question of AI's impact by skill levels. This objective is further underscored by a discrepancy that sometimes exists in the broader labor markets – a skills gap between demand and supply. It simply takes time for upskilling to take place, so it’s typical for demand to exceed supply until a more balanced skilled labor market takes place. It is worth noting, however, freelancers on the Upwork platform seem more likely than non-freelancers to acquire new skills such as generative AI.
For simplicity, let’s assume that the value of contracts is a good proxy for the level of skill required to complete them. We’d then assume that high-skill freelancers typically do high-value work, and low-skill freelancers do low-value work. In other words, our goal is also to understand whether the impact of generative AI is skills-biased and follows a similar pattern from what we’ve seen in the past with new technology disruptions. Note that we’re focusing on the top and bottom tails of the distribution of contract values, because such groups (rather than median or mean) might be most susceptible to displacement and/or reinstatement effects, therefore of primary concern. We define high-value (HV) work as those with $1,000 or more earnings per contract. For the remaining contracts, we focus on a subset of work as low-value (LV) work ($251-500 earnings).
Figure 2 shows the impact of AI by work value, across groups on Upwork. As we discussed before, writing and translation work has experienced some reduction in earnings overall. However, if we look further into the effect of contract value, we see that the reduction is largely coming from the reduced earnings from low-value work. At the same time, for these two types, generative AI has induced substantial growth in high-value earnings – the effect for translation is as high as 7%. We believe the positive effect on translation high-value earning is driven by more posts and contracts created. In the tech solutions sector, the growth in HV earnings in data science and web development is also particularly noticeable, ranging from 6% to 9%. Within the business solutions sector, administrative support is the clear winner.
There are two takeaways from this analysis by work value. First, while we’re looking at a sample of all the contracts on the platform, it’s possible that the decline of LV work is more than made up for by the growth of HV work in the majority of the groups. In other words, except for select work groups, the equilibrium results for the Upwork freelance market overall seem to be net positive gains from generative AI. Second, if we assume that freelancers with high skills (or a high degree of skill complexity) tend to complete such HV work (and low-skill freelancers do LV work), we observe that the impact of generative AI may be biased against low-skill freelancers. This is an important result: In the current discussion of whether generative AI is skill-based, there exists limited evidence based on realized gains and actual work market transactions. We are one of the first to provide market-transaction-based evidence to illustrate this potentially skill-biased impact. Finally, additional internal Upwork analysis finds that independent talent engaged in AI-related work earn 40% more on the Upwork marketplace than their counterparts engaged in non-AI-related work. This suggests there may be additional overlap between high-skill work and AI-related work, which can further reinforce the earning potential of freelancers in this group.
Figure 2
Case study: 3D content work
To illustrate the impact of generative AI in more depth, we have conducted a case study of Engineering & Architecture work within the tech solutions sector. The reason is that we want to illustrate the potentially overlooked aspects of AI impact, compared with the examples of data science and writing contracts. This progress in generative AI has the potential to reshape work in traditional areas like design in manufacturing and architecture, which rely heavily on computer-aided design (CAD) objects, and newer sectors such as gaming and virtual reality, exemplified by NVIDIA's Omniverse.
Based on activities on the Upwork platform, we see that there is consistent growth of job posts and client spending in this category, with up to 12% of gross service value growth year over year in 2023 Q3, and over 11% in job posts during the same period. Moreover, applying the synthetic control method, we show a causal relationship between gen AI advancements and the growth in job posts and earnings per contract. More specifically, there is a significant increase in overall earnings because of AI, an average 11.5% increase. Additionally, as shown by Figure 3, the positive effect also applies to earning per contract. This indicates a positive impact on freelancer productivity and quality of work, due to the fact that we’re measuring the income for every unit of work produced. This suggests that gen AI is not just a facilitator of efficiency but also enhances the quality of output.
Figure 3 Effect of Generative AI on Freelancer Earning per Contract in EngineeringIn a traditional workflow to create 3D objects without generative AI, freelancers would spend extensive time and effort to design the topology, geometry, and textures of the objects. But with generative AI, they can do so through text prompts to train models and generate 3D content. For example, this blog by NVIDIA’s Omniverse team showcases how ChatGPT can interface with traditional 3D creation tools.
Thus, the positive trajectory of generative AI in 3D content generation we see is driven by several factors. AI significantly reduces job execution time, allowing for higher productivity. It facilitates the replication and scaling of 3D objects, leading to economies of scale. Moreover, freelancers can now concentrate more on the creative aspects of 3D content, as AI automates time-consuming and tedious tasks.
This shift has not led to a decrease in rates due to the replacement effect. In fact, this shift of workflow may create new tasks and work. We will likely see a new type of occupation in which technology and humanities disciplines converge. For instance, a freelancer trained in art history now has the tools to recreate a 3D rendering of Japan in the Edo period, without the need to conduct heavy coding. In other words, the reinstatement effect of AI will elevate the overall quality and value proposition of the work, and ultimately enable higher earning gains. This paradigm shift underscores generative AI's role in not just transforming work processes but also in creating new economic dynamics within the 3D content market. Fortunately, it seems many freelancers on Upwork are ready to reap the benefits: 3D-related skills, such as 3D modeling, rendering, and design, are listed among the top five skills of freelancer profiles as well as in job posts.
A dynamic interplay: task complexity, skills, and gen AI
Focusing on the Upwork marketplace for independent talent, we study the impact of generative AI by using the public release of ChatGPT as a natural experiment. The results suggest a dynamic interplay of replacement and reinstatement effects; we argue that this dynamic is influenced by task complexity, suggesting a skill-biased impact of gen AI. Analysis across Upwork's work sectors shows varied effects: growth in freelance earnings in tech solutions and business operations, but a mixed impact in the creative sector. Specifically, high-value work in data science and business operations see significant earnings growth, while creative contracts like writing and translation experience a decrease in earnings, particularly in lower-value tasks. Using the case study of 3D content creation, we show that generative AI can significantly enhance productivity and quality of work, leading to economic gains and a shift toward higher-value tasks, despite initial concerns of displacement.
Acemoglu and Restrepo (2019) argue that the slowdown of earning growth in the United States the past three decades can partly be explained by new technologies’ replacement effect overpowering the reinstatement effect. But with generative AI, we’re at a point of completely redefining what human tasks mean, and there may be ample opportunities to create new tasks and work. It's evident that while high-value types of work are being created, freelancers engaged in low-value tasks may face negative impact, possibly due to a lack of skills needed to capitalize on AI benefits. This situation underscores the necessity of supporting freelancers not only in elevating their marketability within their current domains but also in transitioning to other work categories.
To ensure as many people as possible benefit, there’s an imperative need to provide educational resources for them to gain the technical skills, and more importantly skills of adaptability to reinvent their work. This helps minimize the chance of missed opportunities by limiting skills mismatch between talent and new demands created by new technologies. Upwork has played a significant role here by linking freelancers to resources such as Upwork Academy’s AI Education Library and Education Marketplace, thereby equipping them with the necessary tools and knowledge to adapt and thrive in an AI-present job market. This approach can help bridge the gap between low- and high-value work opportunities, ensuring a more equitable distribution of the advantages brought about by generative AI.
Methodology
To estimate the causal impact of generative AI, we take a synthetic control approach in the spirit of Abadie, Diamond, and Hainmueller (2010). The synthetic control method allows us to construct a weighted combination of comparison units from available data to create a counterfactual scenario, simulating what would have happened in the absence of the intervention. We use this quasi-experimental method due to the infeasibility of conducting a controlled large-scale experiment. Additionally, we use Lasso regularization to credibly construct the donor pool that serves the basis of the counterfactuals and minimize the chance of overfitting the data.
Moreover, we supplement the analysis by scoring whether a sub-occupation is impacted or unaffected by generative AI. The scoring utilizes specific criteria: 1. Whether a certain share of job posts are tagged as AI contracts by the Upwork platform; 2. AI occupational exposure score, based on a study by Felten, Raj, and Seamans (2023), to tag these sub-occupations. We also use data smoothing techniques through three-month moving averages. We analyzed data collected on our platform from 2021 through Q3 2023. We specifically look at freelancer data across all 12 work categories on the platform for high-value contracts, defined as those with a contract of at least $1,000, and low-value contracts, consisting of those between $251 and under $500.
The main advantage of our approach is that it is a robust yet flexible way to identify the causal effects on not only the Upwork freelance market but also specific work categories. Additionally, we control for macroeconomic or aggregate shocks such as U.S. monetary policy in the pre-treatment period. However, we acknowledge the potential biases in identifying which sub-occupations are influenced by generative AI and the effects of external factors in the post-treatment period.
About the Upwork Research Institute
The Upwork Research Institute is committed to studying the fundamental shifts in the workforce and providing business leaders with the tools and insights they need to navigate the here and now while preparing their organization for the future. Using our proprietary platform data, global survey research, partnerships, and academic collaborations, we produce evidence-based insights to create the blueprint for the new way of work.
About Ted Liu
Dr. Ted Liu is Research Manager at Upwork, where he focuses on how work and skills evolve in relation to technological progress such as artificial intelligence. He received his PhD in economics from the University of California, Santa Cruz.
About Carina Deng
Carian Deng is the Lead Analyst in Strategic Analytics at Upwork, where she specializes in uncovering data insights through advanced statistical methodologies. She holds a Master's degree in Data Science from George Washington University.
About Kelly Monahan
Dr. Kelly Monahan is Managing Director of the Upwork Research Institute, leading our future of work research program. Her research has been recognized and published in both applied and academic journals, including MIT Sloan Management Review and the Journal of Strategic Management.
改善居家办公问责制的7个方法受漫长的疫情影响以及网络通讯日益方便迅捷，居家办公了越来越合理化。居家办公成为职场大势，而管理者通常认为居家办公会严重影响员工工作效率。事实上，与其一味心里过滤不如正视其好处，适应混合式和多元化工作。
想了解居家办公问责制，就要知道是居家办公问责制的什么，其好处是什么，以及七个改善团队或企业问责制的方法。
居家办公（WFH）是许多美国专业人士的新型常态，无论是全职的远程工作还是混合式工作。然而，这种工作制度给企业和员工带来许多利益的同时也带来了特别的挑战——尤其是问责制的问题。没有了传统的办公环境，办公效率以及办公可靠度就需要刻意努力和有效的策略来维持。
在这篇文章中，我们将探讨如何改善居家办公的问责制，让个人和团队在这种新的工作环境下蓬勃发展。
What is work-from-home accountability?
什么是居家办公问责制？
Accountability is taking ownership of one’s actions, decisions and outcomes in the remote work context. This means being responsible for meeting deadlines, maintaining quality levels and honoring commitments made to colleagues and stakeholders.
When working from home, it’s important to establish clear expectations and guidelines for accountability. This includes:
Defining specific goals and objectives
Setting realistic deadlines
Providing regular feedback
Giving support
Accountability in remote work also requires effective communication. Inform all team members about progress, challenges and any changes that may affect the workflow. This promotes transparency and allows for better collaboration and problem-solving among teams.
Benefits of work-from-home accountability
居家办公问责制的好处
To enhance accountability in remote work, it’s important to recognize its significance. Some of the benefits of focusing on accountability in remote workers include:
Improved responsibility: When people hold themselves accountable for their work, they’re more likely to step up and take responsibility for the outcome of their tasks. This also gives employees a sense of accomplishment and improves job satisfaction.
More transparency: When you set clear expectations for remote teams, it’s easier for them to be clear about what they’re working on and when they may need help. This also increases trust among team members.
Improved collaboration: Remote team accountability helps employees collaborate by outlining who’s responsible for what, so they know who to communicate with to ensure work is completed.
Fewer missed deadlines: When working remotely, it’s easy to let deadlines slide past without colleagues reminding you when work is due. Improving accountability among WFH team members helps reduce the number of missed deadlines and streamlines workflows.
Better work-life balance: Accountability also improves work-life balance for employees by making sure no team members have to pick up the slack for others.
7 ways to improve work-from-home accountability
改善居家办公问责制的7个方法
Leaders and managers can establish and improve WFH accountability through a few methods. Every organization is different, so you’ll need to find what works best for your situation.
1. Set a clear WFH policy
建立明确的WFH政策
The first step in establishing WFH accountability is to have a clear policy in place. It’s a good idea to ensure team members have buy-in so they don’t feel that they can’t follow the rules. Some items your policy should cover should include expected working hours, hybrid schedules and technology usage policies. Some virtual teams may work on their own schedules and timelines while others will need to have set hours in place to ensure collaboration. Many virtual teams will need more structure than others. It’s important your policy encompasses the best system for your entire organization. Work with your managers and team leaders to find out what policies will work best for everyone.
2. Clarify responsibilities
明确职责
If employees know what’s expected of them, they’ll be more likely to hold themselves accountable to those expectations. Make sure you set clear goals, deadlines and benchmarks so employees can hold themselves to them. Workers need to know what they’re responsible for and who to ask if a project is running late or they need more help. Key performance indicators (KPIs) help teams measure the quality and efficiency of their work to make changes where needed. This is particularly important in a remote work environment where team members don’t have regular physical interactions with each other.
3. Provide the right tools
提供合适的工具
Remote employees may need additional technology and tools to communicate, collaborate and complete tasks. Make sure you provide your teams with the right technology to help them meet goals and stay on track. Virtual teams will need the right communication tool for team meetings, plus project management and collaboration tools to keep each other accountable in real time. Time management and tracking tools help teams determine how to assign project deadlines and prioritize as well. Cloud-based systems help employees work from anywhere and at any time, helping them complete projects when working from home or traveling. Leadership also needs specialized software like ActivTrak to maintain visibility and manage hybrid and remote workforces.
4. Encourage clear communication
鼓励清晰的交流
The best-performing virtual teams are those who can communicate regularly and clearly about their work. Many of the tools you provide your team members will help them communicate about work status, bottlenecks and processes. However, you should also encourage communication among teams through other means, such as weekly newsletters and quarterly all-staff meetings. Just make sure that you’re not scheduling unnecessary meetings for your team’s needs.
5. Give regular check-ins
日常打卡
Beyond clear communication about the team or organization as a whole, structured check-ins for individual employees helps ensure work-from-home policies are working for each person. Give employees a chance to voice their concerns with existing policies or let their managers know where they may be struggling. This also provides an opportunity for managers to help employees see where they’re hitting goals or where they may need to work harder. WFH environments may change over time as your team members and their needs change, so flexibility and regular feedback are key.
6. Measure productivity
衡量工作效率
Remote employee management requires understanding how your teams work best and what blockers may keep them from productivity. One way to make sure you’re setting realistic goals and that team members are accountable for their work when they work from home is to monitor productivity. There are many benefits to using WFH productivity tracking software like ActivTrak, including helping team members with time management, task management and accountability. It also gives your leaders insight to make decisions driven by data rather than guesswork, so you can see where workflows and processes may need tweaking or what’s working for your remote teams. You can also see if team members may be working too much or too little and redistribute the workload as needed.
7. Reward employees for achievements
员工成就奖励
Create a culture of engagement by rewarding employees for being accountable and meeting （or exceeding） expectations. Bonuses, extra paid time off or gifts can be special rewards, but even publicly praising employees for their contributions can go a long way toward improving accountability in your team. Other rewards can include new opportunities to further their careers or take on new challenges. Different teams and employees will have different needs for feeling valued and rewarded, so let your managers find the best way to let employees know they’re appreciated.
Use ActivTrak to improve work-from-home accountability
If you’re ready to take the next step to enhance work-from-home accountability for your team, ActivTrak offers a comprehensive workforce analytics platform customizable to your needs. Get insights to assess and improve employee productivity and well-being and gain visibility into how work gets done within your company. Use data to inform key decisions and optimize outcomes for your remote or hybrid teams. To see how ActivTrak can empower your team, contact our sales team for a free demo.
SOURCE ActivTrak
Remote Work
2024年01月22日
Remote Work
Ceipal Further Increases Recruiter Productivity With New WhatsApp IntegrationThe integration of WhatsApp into the Ceipal platform is a positive development for recruiter productivity. WhatsApp, a popular messaging application, is widely used by individuals and businesses worldwide. By incorporating this widely-used communication channel into Ceipal, the platform can now offer recruiters a more seamless and efficient way to engage with candidates.
Users Can Strengthen Candidate Relationships, Schedule Interviews, and Auto-Source Candidates Directly From the Ceipal ATS
ROCHESTER, N.Y.,OCT. 11,2023 Ceipal, the industry-leading, AI-powered total talent acquisition and automation platform, is further increasing recruiter productivity through its new integration with WhatsApp—a free, cross-platform messaging service—so they can deepen their engagement with candidates in real-time. Ceipal applicant tracking system (ATS) users can now connect with candidates directly through WhatsApp conversations that strengthen relationships, improve efficiency, and attract talent faster.
Ceipal users can configure WhatsApp to contact candidates and automatically schedule interviews with them directly through the ATS, allowing candidates to accept, reschedule, or reject calendar invites directly from WhatsApp. The integration also enables users to auto-source candidates with Ceipal’s industry-leading artificial intelligence technology, which connects with potential candidates by sharing job information via email and WhatsApp messages to engage top talent from internal databases.
“In order to create remarkable candidate experiences, recruiters and staffing professionals must be able to immediately reach and nurture top talent before the competition,” said Ceipal Founder and CEO Sameer Penakalapati. “By interacting with candidates via instant messaging tools, such as WhatsApp, they can further build out their talent pools and personalize their communication with them. Ceipal’s WhatsApp integration is another solution for recruiters and staffing professionals to streamline their workflows and boost their productivity so they can strengthen their candidate relationships.”
Additionally, recruiters and staffing professionals can use WhatsApp to share GDPR consent requests. Candidates can easily accept or decline requests directly through WhatsApp, providing a more efficient way to handle these responses.
Ceipal’s WhatsApp integration is part of its suite of productivity applications integrations, which enable users to leverage their favorite software more effectively. These integrations help recruiters and staffing professionals save valuable time, automate repetitive processes, and empower them to grow their businesses.
For more information about Ceipal’s WhatsApp integration, which is now available for free, please visit the WhatsApp integration page.
About Ceipal
Ceipal is a scalable, AI-driven, total talent acquisition platform that provides visibility across all channels and sources while organizing your data into a single talent ecosystem. With the power of advanced automation and artificial intelligence, Ceipal’s industry-leading ATS and CRM capabilities empower you to efficiently identify, assess, engage, hire, and onboard the best talent. Ceipal Procurewise, our native and fully integrated VMS platform, provides unmatched capabilities for your HR, corporate procurement teams, and MSPs to source, manage, and engage contingent staffing, direct sourcing, and statement of work vendors and workers. Ceipal enables you to integrate, manage, and improve the entire talent acquisition lifecycle, so you can simplify, scale, and transform any high-growth business into a diverse talent powerhouse. Welcome to the new frontier of talent acquisition.
SOURCE Ceipal
Remote Work
2024年01月08日
Remote Work
12 Opportunities for HR in 2024: From Support Function to Strategic Partner
This decade has been uniquely challenging to business with economic uncertainty, geopolitical tension, and the aftermath of the largest global pandemic for a century. But in the coming years, disruptions are likely to increase in frequency and severity (1). The business environment is increasingly volatile, uncertain, complex, and often ambiguous (2). Coupled with rapid advances in technology, organisations are transforming at an unprecedented pace and frequency – from ‘episodic transformation’ toward ‘continuous transformation’ (3).
At the same time, companies are confronted with a series of organisational shifts that have significant implications for structures, processes, and people. These include complex questions around finding the optimal balance between in-person and remote work, building new organisational capabilities in the face of challenging workforce demographics and talent gaps, and focusing on developing a healthy, inclusive, and thriving company culture (4).
HR is the CEO's right-hand in enlightened organisations.
(Barbara Lavernos , Deputy CEO at L'Oreal (5)
HR’s journey from support function to strategic partner has accelerated in recent years. During the pandemic, the CHRO and the HR function became as important to the company as the CFO and the finance function were in the global financial crisis (6). The importance of the CHRO and the function they lead will likely continue as many of the most significant challenges facing organisations (see FIG 1) essentially have people elements at their core. The ability of CHROs to assume new responsibilities, drive transformation for the enterprise, and reinvent and upskill the HR function, and therefore meet these higher expectations, will be critical to organisational success (7, 8).
CHROs have the ability to drive a company’s growth and business outcomes by effectively using people strategy, data insights, and technology to the company’s advantage.
Chuck Robbins, Chair and CEO at Cisco (9)
FIG 1:
For over a decade, I’ve published an annual set of predictions or trends that will shape work and HR for the upcoming year. For 2024, I want to frame these instead as ‘opportunities’ rather than ‘predictions’ – mainly because they will likely take more than a single year to play out. They are informed by the research and work we do at Insight222, interviews with guests on the Digital HR Leaders podcast, conversations with senior HR leaders, thinkers, and industry analysts, and market analysis. References are numbered throughout, and a comprehensive list is included at the end of the article.
Get involved – what should opportunities #11 and #12 be?
Readers may note that the title and accompanying image indicate 12 opportunities, whereas only ten are outlined. That is because – as was the case in the previous three years - I’m keen to crowdsource the final two opportunities from readers. What other opportunities should be included? Please let me know in the comments section below, and I’ll add my favourite two to an updated version in the New Year.
THE 2024 OPPORTUNITIES FOR HR
The first ten opportunities for HR to accelerate its journey from support function to strategic partner are set out below:
1. Prove the value of a fairer, healthier, and more humane organisation
One of HR’s key responsibilities as the steward of people and culture in the organisation (10) is to advocate for a ‘people, first’ approach. With record levels of burnout (11, 12, 13), deepening skills shortages (14), and raised employee expectations about work (15), HR has a pivotal role to play not only in hiring, developing, and retaining great talent, but fashioning the culture and environment to enable talent to perform and thrive. Putting wellbeing at the centre, developing an inclusive and equitable culture, personalising the employee experience, and listening and acting on the employee voice, are just four ways to deliver on this opportunity. Collectively, these initiatives are designed to reinforce the ‘H’ in HR and demonstrate that building a fairer, healthier, and more humane organisation isn’t just the ‘right thing’ to do for the workforce, but that it drives business success too (16). Indeed, research by firms including McKinsey, BCG and PwC (see FIG 2) finds that companies that provide a clear people advantage, who consistently invest in building and developing their human capital and imbue a compelling employee value proposition and experience are more resilient and enjoy better financial performance than their peers (17, 18, 19).
FIG 2:
2. Prepare the organisation and HR for the age of AI
While the hyperbole about generative AI has deepened HR’s engagement with AI (20, 21), research from Gartner finds that only 22% of HR leaders are highly engaged in enterprise-wide discussions on the topic (22). HR should seek to play a leading role as early studies find that AI doesn’t just boost operational performance and productivity (23) but can be used to build better organisations too (24). Four areas where HR should lobby to get involved – all while reinforcing the ‘H’ in HR - are (i) Aligning the workforce transformation that will be required due to AI in line with company strategy and vision (25). (ii) Leading on the development of responsible AI policies and enablement programs (26). (iii) Prioritising high-impact use cases for deploying AI across HR programs and the employee lifecycle (27, 28, 29, 30, FIG 3). (iv) Reimagining the work of key HR roles including the automation of repetitive tasks and increasing the focus on high-value strategic work (31, 32) (v) Building upskilling programs for leaders, managers, employees, and HR professionals. Research finds that if companies can activate the growth combination of data, technology, and people, they stand to gain a premium of up to 11% on top-line productivity. (33).
AI is the defining technology of our time, creating a massive paradigm that will transform the way we work with even greater impact than the introduction of the PC
Kathleen Hogan , Chief People Officer at Microsoft (34)
FIG 3
3. Redesign workplaces and work for the hybrid era
Since the pandemic, 90 percent of companies have embraced a range of hybrid work models (35) with most employees now working remotely over 25% of the time (36, FIG 4). Moreover, eight out of ten CHROs say they have no plans to decrease the amount of remote work in the next 12 months (37). Indeed, Nick Bloom predicts here that in the coming years remote work will experience a ‘swoosh effect’ due to the impact of technology as well as new firms and managers being more open to remote. (38, 39). The debate shouldn’t just be fixated on where people work, it should also provide an opportunity to test traditional assumptions about how work is done and whatwork even is (40). It’s likely that this transition will play out over many years (41), and will require experimentation, data collection and analysis, and iterative learning. This provides the opportunity for chief people officers – and their people analytics teams - to play a leading role in the redesign of work and workplaces for the hybrid era. Research is already being published on topics such as when in-person matters most (42, 43), how teams that are intentional about collaboration are more productive (44), and how to drive innovation through adaptive teaming (45). Hybrid is here to stay, so let’s make hybrid work!
FIG 4
4. Shift people analytics from insight to impact
As Isabel Naidoo, chief people officer at Wise, articulated at the Insight222 Global Executive Retreat in Colorado in September, 2023: “People Analytics is the fastest route to credibility for the chief people officer.” (46). Certainly, for HR to be a truly strategic business partner, it has to have an impactful people analytics function. Insight222's fourth annual People Analytics Trends study, (47) finds that the discipline continues to grow in importance and influence with 22% of people analytics leaders now reporting to the CHRO (compared to 13% in 2020). The challenge for many companies is to move people analytics from insight to impact (48, 49). Our research identified eight distinct characteristics (see FIG 5) that set Leading Companies apart from their peers and enable them to deliver value on a consistent basis. Chief people officers wanting to shift their people analytics team to an ‘A Team’ (see FIG 6) should focus on understanding their organisation’s most pressing business priorities and then align and prioritise people analytics activities that will support them. A capable and flourishing people analytics team eases the path towards a quantified organisation (50) and an evidence-based HR function (51) Certainly, people analytics is a foundational capability to helping HR progress and realise the opportunities outlined in this article.
People Analytics is the fastest route to credibility for the chief people officer
Isabel Naidoo, Chief People Officer at Wise (46)
FIG 5
FIG 6
5. Partner more effectively with Finance
Deploying financial capital and human capital together is the secret to the success of a talent-driven organisation (52). If HR seeks to become a truly strategic partner to the business, then it needs to have an effective partnership with finance not least because of increasing regulation about the disclosure of human capital information (53, 54). Research by Insight222 (55) finds that when it comes to delivering value with people analytics, a strong relationship with finance can make the difference. Of the 65 (out of 271 companies) surveyed who confirmed that they had built a partnership with finance, 99% reported that the people analytics team had delivered measurable outcomes over the last 12 months. In HR, we need to be better at building business cases for investment, and in quantifying the commercial value of what we do – just like other business functions. Building a strong and mutually beneficial partnership with finance – like Alan Susi at S&P Global (56) and Laura Wright Shubert at MetLife (57) have achieved – is a good place to start.
6. Build the skills-based organisation
Talent gaps and shortages represent the most pressing challenge that companies face (58), with three-quarters of CEOs being concerned about how the availability of key skills will impact on their growth strategies (59). These talent scarcity challenges will only be exacerbated by shrinking working populations – especially in the G7 economies (60) and rapid advances in technology meaning that 44% of workers’ skills will be disrupted by 2028 (61). This is leading to a shift from the traditional focus on jobs to one on skills (62) and the continued rollout of internal talent marketplaces (63, 64) with one study finding that 90% of companies are moving towards a skills-based approach (65). The effort to do so should not be underestimated with the same study finding that less than 20% are currently adopting skills-based approaches to a significant extent. While it is still early days, benefits cited by companies that have made this shift include (i) Standard Chartered unlocking productivity of $2.1m from a talent marketplace pilot in India (66, 67), (ii) IBM improving diversity through skills-based hiring (68), (iii) Unilever increasing productivity by 40% and significantly reducing attrition through its internal talent marketplace (69), and (iv) J&J democratising career development and mobility for its employees (70). The undoubted potential of skills-based approaches for hiring, learning, internal mobility, compensation, and workforce planning is tantalising, but it also makes it difficult for organisations to know where to start. HR can help by identifying a challenge in a specific business function and/or location, partnering with a senior business stakeholder and piloting a skills-based approach, starting to build a skills taxonomy, and then learning and iterating as you go.
As companies jostle to build a complete picture of what they need (for the future of work) and how to get there, we’re fast learning that the real currency is skills
Placid Jover, Chief Talent Officer at Unilever (71)
FIG 7
7. Make workforce planning strategic
The shift to skills, the pace and frequency of transformation, and rapid technological advances have all increased the urgency for organisations to become proficient in strategic workforce planning. It is now a top three challenge for people leaders (see FIG 8, 72). The availability of data-driven insights is altering the landscape with responsibility for SWP increasingly coming under the auspices of the people analytics team – this is the case in 50% of companies, based on 2023 research by Insight222 (73). This is driving the expansion from a pure focus on cost and operational based workforce planning to strategic and skills-based workforce planning (74, 75), which enables organisations to get a clearer view on future talent needs and how to close any gaps (76, 77). Steps for HR leaders to do this well include (i) Linking SWP to the business strategy (78). (ii) Joint ownership of SWP with the business and close collaboration with finance. (iii) Prioritising the most critical workforce segments. (iv) Focusing on skills as well as cost. (v) Combining HR, business, and external data to get a full picture (79). (vi) Measuring the impact of workforce planning activities and linking these to business outcomes. (80, 81)
FIG 8
8. Advance diversity, equity, inclusion and belonging
The business case for diversity, equity, inclusion and belonging (DEIB) continues to grow stronger. In a recent McKinsey study, leadership diversity is convincingly associated with company performance, societal impact, and employee experience (82, FIG 9). Moreover, research by Insight222 found that in 2023 – for the third successive year - DEIB is the area where people analytics is adding the most business value (83). These timely reminders of the value of DEIB are important in a year where the US Supreme Court ruling on affirmative action led to some companies rolling back on their DEIB initiatives (84, 85). As such, HR leaders have a critical role to play in advancing the DEIB agenda in their organisations, demonstrating that it isn’t just the right thing to do, but that is demanded by employees and leads to better business outcomes. People analytics can help in terms of enabling the organisation to measure outcomes and drive action (86), using advanced analytics to get deeper insights on belonging and inclusion, and supporting organisational moves to be more transparent – including providing data that forms the basis of annual DEIB reports e.g. Microsoft (87). Also, with demographics meaning that 150 million jobs will shift to older workers by the end of the decade (88), HR has an opportunity to ensure that their organisation is able to attract, develop and retain older workers, and enable them to thrive.
FIG 9
9. Empower and invest in people managers
75% of HR Leaders say that their managers are overwhelmed by the growth of their job responsibilities (89) while more than 50% of managers report feeling burned out (90). These concerning statistics are not surprising given that the role of the manager is being changed beyond recognition due to digitalisation, hybrid work and agile initiatives (91, 92). The pressure is exacerbated by companies cutting middle management roles in the current macroeconomic climate. Given that studies find that investing in people managers leads to better firm financial performance (93) and is key to realising the opportunities from AI (94), it’s time to better support and empower people managers. One way HR can do this is through democratising people data to help managers to be more productive, support decisions on hiring, promotion and pay, and equip them with insights to be more effective and human leaders. The benefit of successfully democratising people data to managers are vast, with one 2023 study calculating that in a 10,000 person organisation, this could amount to $400 million in cost savings, and almost $200 million in revenue expansion (95, 96). HR leaders can also support people managers through being more thoughtful about spans and layers, reimagining the role of the manager, implementing capability building programs, and prioritising manager experience and wellbeing (97).
10. Prioritise HR upskilling
If HR is to become a true strategic partner to the business and realise the opportunities from new operating models (98) then chief people officers need to prioritise efforts to upskill their HR professionals – particularly on topics such as business acumen, technology, and analytics (99). At Insight222, our HR in the Digital Age study identified nine skills for the future HR professional to be more data driven, experience led, and business focused (100, 101). Additionally, our 2023 study, Upskilling the HR Professional: Building Data Literacy as Scale, highlighted the critical role of the chief people officer and their direct reports in role-modelling the use of people data and analytics (102). With another study by Mercer finding that 41% of chief people officers wish they had had greater depth in people analytics prior to assuming their roles, there is clearly significant room for improvement (103). On a more positive note, 55% of companies now say they have a data driven culture in HR, which is up from 42% in 2021. 2024 is the year to improve this further, and from a data literacy perspective, Insight222 research highlights five skills (see FIG 10) that HR professionals need to develop (104). Moreover, the study also highlights that the investment required is between $600-$800 per person for an upskilling program (see example in FIG 11). Now is the time to invest in upskilling HR professionals.
FIG 10
FIG 11
References
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(40) Lynda Gratton – Redesigning How We Work (Harvard Business Review, 2023)
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(44) Mary Baker , 4 Modes of Collaboration Are Key to Success in Hybrid Work (Gartner, 2021)
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(77) Laura Wright Shubert and David Green ?? - How MetLife Made a Success of their Strategic Workforce Planning (Digital HR Leaders podcast, myHRfuture, 2022)
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(95) Lexy Martin - Unlocking Manager Effectiveness: The Next Driver of Value (Visier, 2023)
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(98) Sandra Durth, Neel Gandhi, Asmus Komm, and Florian Pollner – HR’s new operating model (McKinsey, 2022)
(99) Dave Ulrich, Joe Grochowski, Norm Smallwood, and Joseph Hanson - What Makes an Effective HR Function? (The RBL Group, 2023)
(100) Manpreet Randhawa - 9 Skills HR Professionals Need to Succeed in the Digital Age (myHRfuture, 2023)
(101) Caroline Styr and Ian Bailie - HR in the Digital Age (Insight222, 2021)
(102) Naomi Verghese and Jonathan Ferrar - Upskilling the HR Profession: Building Data Literacy at Scale (Insight222, 2023)
(103) Gordin et al (see reference 7)
(104) Verghese and Ferrar (see reference 99)
A selection of other 2024 HR predictions and trends
There are a plethora of other resources documenting predictions and trends for HR and the future of work in 2024 including:
Gartner - Top 5 HR Trends and Priorities for 2024
Visier Inc. - 10 Workforce trends for 2024: The New Rules of HR
Mercer – 2024 Global Talent Trends
McKinsey - What matters most? Eight CEO priorities for 2024
Ken Oehler – RADICL People Predictions for 2024
Damon Klotz and Didier Elzinga - 7 trends that will define HR in 2024
Dr. Solange Charas and Stela Lupushor - HR and Workforce Trends Predictions for 2024
Dan Schawbel - 10 Predictions for 2024 from a World-of-Work Expert
Joelle Emerson - New Data: 2023 DEI Trends & 2024 Opportunities
Francesca Di Meglio - 8 HR Trends for 2024
LinkedIn News - 34 Big Ideas that will change our world in 2024
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ABOUT THE AUTHOR
David Green ?? is a globally respected author, speaker, conference chair, and executive consultant on people analytics, data-driven HR and the future of work. As Managing Partner and Executive Director at Insight222, he has overall responsibility for the delivery of the Insight222 People Analytics Program, which supports the advancement of people analytics in over 90 global organisations. Prior to co-founding Insight222, David accumulated over 20 years experience in the human resources and people analytics fields, including as Global Director of People Analytics Solutions at IBM. As such, David has extensive experience in helping organisations increase value, impact and focus from the wise and ethical use of people analytics. David also hosts the Digital HR Leaders Podcast and is an instructor for Insight222's myHRfuture Academy. His book, co-authored with Jonathan Ferrar, Excellence in People Analytics: How to use Workforce Data to Create Business Value was published in the summer of 2021.
Remote Work
2023年12月14日
Remote Work
Exploring the Top 10 HR Tech Trends of 2024The HR field is undergoing significant changes in 2024, with technology playing a pivotal role. Key trends include the use of AI and ML in talent acquisition, a shift to skills-based hiring, and the integration of remote and hybrid work models. Emphasis on diversity, equity, and inclusion (DEI) is growing, alongside the exploration of the Metaverse for virtual HR practices. Data analytics is crucial for informed decision-making, and there's a focus on optimizing user experience and supporting employee well-being and mental health. Enhancing the candidate experience and ensuring data security and compliance are also critical.
2024年人力资源领域正在经历重大变革，技术发挥着关键作用。主要趋势包括在人才招聘中使用人工智能和机器学习，向基于技能的招聘模式转变，以及远程和混合工作模式的整合。多元化、平等和包容性（DEI）的重视日益增加，同时探索元宇宙在虚拟人力资源实践中的应用。数据分析对于做出明智的决策至关重要，优化用户体验和支持员工福祉和心理健康也同样重要。加强候选人体验和确保数据安全与合规性也是关键。
Human Resources is continuously evolving, and in 2024, it is set to undergo a remarkable transformation. With the integration of cutting-edge technology and innovative approaches, HR departments are better equipped than ever to attract, retain, and manage talent effectively. In this blog, we'll delve into the top 10 HR tech trends of 2024, offering a glimpse of how these trends shape the future of HR.
Artificial Intelligence and Machine Learning
Artificial Intelligence (AI) and Machine Learning (ML) are at the forefront of HR tech trends in 2024. These technologies are revolutionizing talent acquisition by streamlining the recruitment process. AI-driven algorithms can assess resumes, conduct initial candidate screenings, and predict a candidate's suitability based on historical data. ML algorithms analyze patterns within employee data to provide insights into performance, helping HR departments make more informed decisions about promotions and job placements.
Skills-based Hiring
Skills-based hiring, which prioritizes a candidate's specific skills and abilities, will significantly impact companies in 2024. This approach will help companies swiftly adapt to the changing job landscape and technological advancements. In 2024, skills-based hiring will:
Improve Recruitment Efficiency: Companies will find it easier to match candidates directly to job requirements, reducing time and resources spent sifting through resumes and interviews.
Reduce Skill Gaps: With skills-based hiring, companies can address skill gaps more effectively and invest in training and upskilling for existing employees to meet the organization's needs.
Increase Employee Productivity: Hiring individuals with the right skills results in quicker onboarding and increased employee productivity, driving business performance.
Remote and Hybrid Work:
Remote work has swiftly transformed the modern workplace and is set to become a permanent fixture in 2024. HR professionals are tasked with managing the challenges of overseeing remote teams, encouraging collaboration, and maintaining employee engagement within virtual environments. Moreover, the growing prominence of hybrid work models demands strategic initiatives to enhance productivity and work-life balance for employees, regardless of their location within or outside the office.
Diversity, Equity, and Inclusion (DEI):
Inclusion and diversity will remain at the forefront of HR agendas in 2024. Organizations will strive to create inclusive cultures where employees from all backgrounds feel valued, respected, and empowered. HR professionals will focus on building diverse talent pipelines, implementing unconscious bias training, and developing inclusive leadership practices. Addressing pay equity and ensuring equal opportunities at all levels will also be prioritized.
Focus on Metaverse in HR
The Metaverse is poised to redefine HR practices. This revolutionary technology seamlessly integrates virtual meetings, interviews, onboarding, and learning experiences. By creating lifelike virtual environments, HR professionals can host dynamic meetings, conduct immersive interviews, and foster engaging discussions among remote teams.
Recognizing its vast potential, organizations embrace the Metaverse to reshape traditional HR processes and enhance collaboration across distributed teams. The Metaverse empowers HR to transcend geographical boundaries, ushering in a new era of impactful virtual interactions that elevate employee experiences and boost organizational productivity.
Harnessing Data for Informed Decision-Making
This trend revolves around leveraging advanced data analytics tools to collect, process, and interpret vast amounts of data within the HR domain. By doing so, HR professionals can gain valuable insights into various aspects of workforce management, including employee engagement, performance metrics, talent acquisition, and workforce planning.
This trend is driven by the recognition that data is critical to making strategic and informed decisions. HR departments increasingly adopt predictive analytics to foresee trends, identify potential challenges, and devise proactive solutions. Through data-driven decision-making, organizations can optimize their HR strategies, streamline operations, and enhance overall workforce effectiveness.
Optimize the User Experience
As HR tech evolves, the user experience is optimized for HR professionals and employees. This trend is about making the technology more user-friendly and intuitive. User-friendly interfaces, simplified navigation, and customized dashboards make it easier for HR personnel to access and utilize HR tools, ultimately improving efficiency and reducing the learning curve.
Employee Well-being and Mental Health Support
HR technology trends are placing a spotlight on employee well-being and mental health. Innovative tools and applications are designed to monitor and support employee well-being, offering resources to help individuals manage stress and achieve a healthy work-life balance. This emerging trend underscores the recognition of the significance of comprehensive employee care.
Emphasizing Candidate Experience Enhancement
Even with resource limitations in 2024, CHROs are committed to maintaining their teams' focus on essential tasks. Companies recognize the imperative need to continually enhance the candidate experience, fortify their employment brand, and expedite their recruitment processes to remain competitive in attracting top talent. Among the myriad HR trends discussed, refining the candidate experience remains an enduring challenge for TA teams.
Data Security and Compliance
Data security and compliance are paramount with the growing use of HR tech. HR departments are increasingly implementing data protection measures to safeguard sensitive employee information and adhere to the ever-evolving global data protection regulations.
Conclusion
As we step into 2024, HR tech trends are shaping the future of human resources management. These trends, from artificial intelligence and machine learning to a strong focus on employee experience, enhance how organizations attract, retain, and manage talent. By staying abreast of these top 10 HR tech trends, businesses can position themselves to succeed in an ever-changing world of work. Embracing these technologies will streamline HR processes and create a more engaged, diverse, and resilient workforce.
by Navjot Kaur
Remote Work
2023年11月17日
Remote Work
Hiring Trends 2024: For Tech And Digital Global Employers
ANWESHA ROY 8 MINUTE READ
The hiring landscape has gone through a lot of fluctuations in the last two years. The United States and the European Union (EU) fell into recession, triggering widespread panic amongst tech and digital companies. Businesses had to lay off a large chunk of their workforce as a cost-cutting measure, some even freezing hiring temporarily.
Fast-paced digital agencies and startups understood that they needed a flexible hiring approach to adapt to these circumstances. They realized that hiring remote talents from offshore locations like LatAm, East EU, East Asia, and India was a viable way to grow their workforce. Recruiters soon realized that they needed to prioritize both skills and cultural adaptability while looking for remote talents. Hiring platforms emerged as the helping hand in this matter, with their comprehensive solutions geared to deliver a fast and reliable hiring experience.
In this blog, we will discuss these developments and other hiring trends for 2024, and the job roles that will grow in the near future.
Hiring Trends That Will Define 2024
Adaptable hiring strategies will help tackle the talent shortage
Remote hiring for remote positions is here to stay
Skill-based hiring will gain more prominence
India’s rising talent pool to meet global needs
Talent expectations from global employers are changing
Organizations will look for culture-fit talents
Emergence of hiring platforms
Artificial Intelligence (AI) and Machine Learning (ML) will play a crucial role in optimizing the hiring process
1. Adaptable hiring strategies will help tackle the talent shortage
By 2030, the global tech talent shortage will rise to 85.2 million, leading to a massive loss in revenue. Global employers will be more careful and strategic when hiring in 2024. The demand-supply gap of skilled tech and digital talents is growing every year, which means startups have to work harder to onboard the best talents. They will also look to hire remote talents from offshore locations to upscale as per their budget and resources.
2. Remote hiring for remote positions is here to stay
In 2023, tech and digital startups have to deal with the growing tech talent shortage amidst a precarious global economic scenario. Remote hiring is the most viable solution for these organizations, as they can easily access skilled and cost-effective talents across the globe, with a faster hiring process. Even companies following on-site or hybrid workstyles are hiring certain roles remotely, due to its benefits. contract hiring – uncertain economic conditions are compelling companies to hire full-time long-term contractual employees for flexibility and scalability. Global employers are also open to long-term contractual engagements for full-time employees, to ensure flexibility and scalability.
The number of startups hiring remotely has grown from 900 in 2019, 2,500 in 2020, and 14,000+ in 2022. With a growing number of talents preferring remote workstyle, companies will be able to retain their top talents by setting up distributed teams instead of strictly adhering to local hiring.
3. Skill-based hiring will gain more prominence
92.5% of companies have seen a reduction in their mis-hire rate when implementing skills-based hiring, with 44% reporting a decrease of more than 25%. Going ahead, the qualification of a candidate will be defined by their hard and soft skills, and not just their education and work experience. Technical skills, problem-solving abilities, leadership, adaptability, and more will be closely evaluated by companies. A study shows that hiring for skills is five times more predictive of job performance than hiring for work experience.
To drive this initiative, startups will rely on vetting tools and integrate them within their hiring process. The assessment will be tailor-made for tech and digital roles to aid in finding the most suitable talent. Furthermore, startups have to drop degree requirements from job descriptions and become more specific about the capabilities they are looking for.
4. India’s rising talent pool to meet global needs
Contrary to the talent crisis across the globe, India is generating tech and digital talents consistently in large numbers. Their tech talent pool has grown by 120% in the last five years, with two million STEM graduates every year. The country also has a surplus of 2.5 million digital talents, presenting a great opportunity for global employers.
The average salaries of Indian talents is lower than that of US, EU, and AUS talents, which means global companies can hire equally or better-skilled professionals at a lesser cost.
India also has a wide network of talents specializing in emerging technologies. The number of Indian AI experts on LinkedIn has grown by 14x in the last seven years, the 5th fastest growth after Singapore, Finland, Ireland, and Canada.
These reasons have helped India become the most preferred talent-sourcing hub in the world.
5. Talent expectations from global employers are changing
The global labor market is very tight and the talents have an upper hand in deciding their next employer. To remain competitive, startups have to reexamine their hiring strategies and cater to what the top talents are looking for.
A study reveals that top Indian remote talents want better pay, good work-life balance, and prospects of career growth while choosing an employer. Before hiring from India, global employers have to prepare an offer that fulfills the expectations of these talents.
6. Organizations will look for culture-fit talents
Technical proficiency makes a candidate qualified for the job role, but a cultural fitment aligns makes them the perfect addition to the organization. Both large-scale companies and startups need talents who take initiative, have a positive attitude, and handle situations in a non-confrontational manner. Such skills will uphold the work environment and promote a healthy culture. An org-culture fit talent will be more engaged and satisfied with their job than just a skilled professional.
Finding and hiring culture-fit professionals also impacts the retention rates, as a study shows that 73% of talents have left a job due to poor cultural fitment.
7. Emergence of hiring platforms
According to a 2022 survey by Upwork, 50% of businesses outsource at least some of their work. Of those businesses that outsource, 38% use hiring platforms to find freelancers and contractors. Another report reveals that 48% of companies are planning to increase their use of hiring platforms for offshoring in the next two years.
Hiring platforms offer a number of advantages to businesses, including access to a large pool of skilled and experienced freelancers and contractors, the ability to scale their workforce up or down as needed, and cost savings on labor costs. They also help in vetting candidates to find the right technical and cultural fit, helping in making an informed hiring decision. With their end-to-end solutions, hiring platforms help both fast-paced businesses and enterprises in upscaling confidently within a short period of time.
8. Artificial Intelligence (AI) and Machine Learning (ML) will play a crucial role in optimizing the hiring process
44% of recruiters find AI useful in shortening the hiring cycle, which is the main priority, 32% found it a good way to cut down overhead costs, and 24% found it helpful in identifying the right talents.
Studies suggest that it takes 29 to 66 days to fill tech-based vacancies, which is a very long hiring cycle for startups. In a fast-paced environment with constant deadlines, open roles must be filled as quickly as possible. As time is of the essence, startups are beginning to leverage Artificial Intelligence (AI) and Machine Learning (ML) in their hiring process.
By reducing the time to hire, small-scale startups are also able to cut down overhead and operational costs. In fact, AI/ML have helped companies in North America cut down their costs by 40%, in Europe by 36%, and in the APAC region by 25%.
Application Tracking System (ATS) is also being used by startups to ensure a seamless hiring process. The ATS is useful in organizing applications, managing communications, and tracking the status of candidature. 99% of Fortune 500 Global companies are using ATS for an elevated hiring experience and short cycle, so why shouldn’t startups? After all, it oversees all the tedious processes in hiring, so managers can focus their energy on decision-making and other important tasks.
Region-wise Job Roles Which Will Grow In Demand in 2024
United States
Europe
Australia
According to a survey by NASSCOM, future skills demand is expected to grow to 3.5-3.7 million by 2024, rising from the present 1.2-1.3 million currently employed by the industry. Building on that, here are a few predicted jobs that will be in demand in the next few years, sorted region-wise.
United States
The United States is leading the world in next-gen technology, which reflects in their plans to hire more cloud engineers, machine learning engineers, data scientists, and salesforce developers. The digital sector is also growing at an average of 8.5% CAGR, and the startups are looking to hire more web developers, ad specialists, UI/UX designers, and digital marketing managers.
Europe
European tech startups will focus increasingly on their core services and hire more front-end developers, DevOps engineers, and blockchain developers. Similarly, digital companies will look for PHP developers, web developers, and digital marketing managers. SaaS-based startups in the EU will focus on building next-gen products and user privacy, which is why they will hire more product managers, customer success managers, and security engineers.
Australia
Despite fears of recession, Australian tech startups are focussing on resilient hiring to support their services. They will look to onboard more back-end developers, database administrators, and systems engineers. In the digital sector, SEO specialists, web analytics specialists, and digital sales representatives will be in demand. SaaS-based startups in the country will focus on better customer service by hiring account executives, customer success managers, and e-commerce managers.
Jobs created by AI to look out for in 2024
Prompt Engineer
Prompt engineers are experts in designing and developing AI-generated text prompts for improving the AI prompt generation process for several applications. They use data analysis and programming skills to deliver an elevated user experience in tech and SaaS products.
AI Trainer
AI trainers are responsible for teaching AI systems how to think and interact with users. They work with the development team to ensure the chatbots and virtual assistants respond to customer queries and resolve them effectively. These experts have a strong background in data science, natural language processing (NLP), and machine learning.
AI Auditor
AI auditors evaluate the safety, legality, and ethics of AI systems so they can be put to good use. They review codes, conduct data analysis, and test the systems to ensure the system does not produce biased or discriminatory responses.
Machine Managers
Machine managers oversee the AI-operated hardware and systems, and ensure everything is intact for peak performance. They are responsible for the efficient operation and minimum downtime of AI tools, making them indispensable for the tech sector.
Final Thoughts
The secret to success in talent acquisition is to identify the trends, adapt your strategy, and prepare for the future. It is important to constantly monitor the ever-changing hiring landscape to build a productive workforce for the long run.
As we enter 2024, the major focus for global employers will be on identifying the best candidates for the role and leveraging digital tools for a smarter process. Digital agencies also have to offer what talents seek in their employer in order to improve their chance of hiring the best candidates.
By aligning these hiring trends in advance, global recruiters like digital agencies, IT services companies, and SaaS-based tech companies can stay ahead of the curve and hire methodically.
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